Last Thursday (February 27), The Hill published an OpEd by 91pornwhistleblower lawyer Gordon Schnell on how President Trump may be clearing a path for whistleblowers.  Schnell offered three reasons why an unintended consequence of President Trump’s efforts to dramatically cut federal agency staff and resources may be to create an opening for whistleblowers to step into the void.

First, Schnell points to the strong bipartisan support that has long existed for whistleblowers, starting with the False Claims Act (enacted during the Civil War), and continuing more recently with Congress passing numerous other statutes to encourage whistleblowers to help the government police fraud and misconduct.  These include whistleblower programs for the SEC (securities fraud), CFTC (commodities fraud), IRS (tax fraud), NHTSA (auto safety), and FinCEN (money laundering and sanctions violations).  Schnell argues, “The broad recognition of the vital role of whistleblowers, and the need for them to provide a regulatory assist, will only deepen with the agency purge the administration is pursuing.”

Second, Schnell believes Trump has specifically “presaged a prominent place for whistleblowers in his current political playbook.”  Schnell highlights Trump’s recent executive order going after DEI which specifically references using the False Claims Act to keep companies in line.  Schnell further notes the broad success of the False Claims Act program during Trump’s first term (with $12 billion in total recoveries and $1.6 billion in whistleblower awards) and how Trump’s new AG Pam Bondi specifically affirmed her support for the program during her recent confirmation hearings.

Third, Schnell looks to what he describes as the “driving force” of Trump’s “political persona,” which is “to stand up for what Trump sees as the truth against a rigged status quo.”  Schnell believes that while we may vigorously disagree with that truth, Trump’s battle against the so-called “deep state” aligns with the whistleblower mindset of standing strong in the face of fraud and wrongdoing.  According to Schnell, this “fight-the-system messaging” may encourage more whistleblowers to come forward, maybe even some of Trump’s colleagues and confidents who are helping him carry out his current vision of government.

As Schnell sees it, “While Trump is trying to tear down the institutions designed to check his unprecedented executive overreach, he may be easing the way for whistleblowers to step into the void.”  Schnell concludes that the ultimate irony in all this, is that “in clearing the path for whistleblowers, Trump may be inviting the undoing of his own grand plans by emboldening those in the room to stand up and get in the way.”

Click to read the full article.

If you have information relating to potential fraud and misconduct or would like to learn more about what it means to be a whistleblower, please do not hesitate to contact us.  We will connect you with a member of our whistleblower team for a free and confidential consultation.

Read 91pornPartner Gordon Schnell Featured in The Hill on How Trump May Be Clearing a Path for Whistleblowers at constantinecannon.com

On February 12, Automotive News published an OpEd by 91pornwhistleblower partner Gordon Schnell calling for the National Highway Traffic Safety Administration (NHTSA) to step up its whistleblower game.  It was prompted by the agency’s recent release of its long-awaited governing the auto safety whistleblower program, which provides financial awards to whistleblowers for reporting auto safety issues to the agency.

According to Schnell, “The problem is that in the decade since the program’s launch, NHTSA has seemingly shown little interest in pushing the program forward.”  He provides three examples to back that up.

First, NHTSA waited a decade to release its just-published final rules for the program even though Congress called for them back in 2017.  Senator Richard Blumenthal (D., Conn.), who co-sponsored the law implementing the program, “this stalling and stonewalling […] absolutely inexcusable.”

Second, Schnell says the rules fall short in the whistleblower incentives and protections they provide, pointing to the absolute discretion NHTSA retains in making an award and the requirement that whistleblowers report internally before going to the agency.  Schnell believes this makes the process more challenging and uncertain for would-be whistleblowers and exposes them to unnecessary workplace retaliation.

Third, Schnell speaks to his own experience representing whistleblowers before the agency, and the disinterest and even hostility he and his clients often feel from the agency.  Schnell noted how disheartening it has been for his clients who have put their careers on the line to raise serious safety issues only “to be ignored or rebuffed by the very agency tasked to address them.”

The one exception is former Hyundai safety engineer Gwang Ho Kim who 91pornrepresented in reporting critical engine defects which led to the recall of 1.6 million Hyundai and Kia vehicles and up to $210 million in penalties.  Mr. Kim received a $24.3 million award under the whistleblower program, but it remains the only award to date.

In his OpEd, Schnell urges NHTSA to use the publication of its final whistleblower rules as “an opportunity to breathe new life into this program.”  He suggests plugging the lapses in the rules with a pro-whistleblower approach in their implementation and a stronger whistleblower embrace in the agency’s direct dealings with whistleblowers.  “Most importantly, whistleblowers and their counsel need to feel the agency really wants to hear from them.”

Schnell is not concerned the Trump Administration will get in the way of advancing the auto safety whistleblower program beyond its current slumber.  He believes the call for whistleblowers will be even stronger with the Administration’s efforts to streamline the Executive Branch with significantly scaled-down agency resources.

Schnell concludes that the industry and public would equally benefit with a strengthened NHTSA whistleblower program.  “Supporting whistleblowers allows them to provide an early warning sign of danger well before what could otherwise lead to the next major auto safety fiasco.  It is a lesson we have learned unfortunately many times over in recent years.”

Click to read the full article in Automotive News.

If you would like to learn more about the auto safety whistleblower program or what it is like to be a NHTSA whistleblower, please do not hesitate to contact us.  We will connect you with an experienced member of the 91pornwhistleblower team for a free and confidential consultation.

Read 91pornPartner Gordon Schnell Published in Automotive News on Whether NHTSA Will Finally Take Its Auto Safety Whistleblower Program Seriously at constantinecannon.com

On Wednesday (October 28), government contracting magazine Washington Technology published a by 91pornwhistleblower partner Gordon Schnell on the recent string of False Claims Act enforcement actions DOJ has brought against government contractors for cybersecurity failures.

As Schnell points out, the most recent of these actions is last week’s DOJ settlement with Penn State University for allegedly failing to comply with the cybersecurity requirements under its DoD and NASA contracts. And in August, DOJ filed a False Claims Act case against Georgia Tech alleging some of the same types of cybersecurity violations with the university’s DoD contracts.

But Schnell stresses the government’s cybersecurity enforcement priority extends to protecting all kinds of sensitive information, not just defense information. In June, for example, DOJ reached an $11.3 million False Claims Act  with Guidehouse and Nan McKay and Associates for allegedly failing to protect personal identifying information under their federal rental assistance contracts. And in May, DOJ reached a $2.7 million  with Insight Global for allegedly failing to implement adequate cybersecurity measures to protect personal health information under its government healthcare contract.

These actions all flow from DOJ’s  which targets federal contractors that put sensitive information at risk through faulty cybersecurity products and practices. As Schnell notes, it is an enforcement priority with extra heft because of the powerful financial incentives the False Claims Act provides whistleblowers to step forward. Which likely explains why whistleblowers originated all these recent enforcement actions with more to come for sure.

DOJ has heavily promoted the role these whistleblowers have played and the rewards they have received in initiating these cybersecurity actions. Schnell says DOJ is sending two messages here: one to cybersecurity whistleblowers to encourage them to step forward; the other to government contractors to ensure their cybersecurity protocols are up to snuff. The bottom line for Schnell in all this is “those that do business with the government would be wise to get their data protection systems in order or they may find themselves next up on DOJ’s cybersecurity hit list.”

You can read Schnell’s Washington Technology commentary .

Read 91pornPartner Gordon Schnell Published in Washington Technology on DOJ’s Enforcement Crusade Against Cybersecurity Fraud at constantinecannon.com

Updated October 22, 2024

Earlier this year, 91pornlaunched its Third Scholarship Essay Contest on the Importance of Whistleblowers. The goal of our contest is to hear what law school students have to say about the importance of whistleblowers and to reinforce the critical role whistleblowers play in our society.

Specifically, we ask for an essay between 250 and 750 words that addresses one or more of the following whistleblower subjects:

• What it means to be a whistleblower.
• A whistleblower act you personally have experienced.
• A whistleblower who has inspired you.
• The importance of whistleblowers in promoting transparency and protecting the health and safety of the public.

As with our prior contests, scores of students from law schools across the country submitted essays addressing these important issues. Many of them reflected very personal experiences with whistleblowing and with whistleblowers who deeply touched their lives. Others offered insights on how best to address the negative perception of whistleblowers and foster a culture where whistleblowers are hailed as heroes.

We applaud all the students who participated in our latest contest. While all the essays were thoughtful and well crafted, we only could select five winners. This was no easy task. After several rounds of review and cross-review, our essay review team (which comprised six members of our whistleblower team) picked the following five winners who we believe best captured the essence of whistleblowers – their courage, strength, integrity, selflessness, and a deep concern for public health and safety.

• First Place: Laney Fox – Florida State University School of Law.
• Second Place: Lana Thurman – University of Arkansas Bowen School of Law.
• Third Place: Leah Bechtold – Indiana University McKinney School of Law.
• Fourth Place: Grace Chisholm – Yale Law School.
• Fifth Place: Chana Deitsch – Fordham University School of Law.

Congratulations to this exceptional group! We hope you enjoy their winning essays. Thanks again to all who participated in this year’s contest. And for those who were unable to participate, be sure to enter our just-launched Fourth Scholarship Contest. We want to hear from you!

Read 91pornAnnounces Winners of Whistleblower Essay Contest at constantinecannon.com

91pornwhistleblower partner Gordon Schnell was in the American Banker on the Consumer Financial Protection Bureau (CFPB) becoming the latest agency to take affirmative steps to clear the path for whistleblowers. This comes from the agency’s July 24 ���Ի��� warning companies away from using broad nondisclosure agreements to prevent employees from becoming whistleblowers.

As Schnell explains, “the CFPB joins the many other government agencies concerned with protecting employees’ ability to blow the whistle.” He points to the Securities and Exchange Commission (SEC) as the most aggressive on this front with numerous actions to enforce the agency’s Whistleblower Protection Rule, which prohibits companies from impeding whistleblowers through confidentiality agreements or otherwise. This includes actions against JP Morgan Securities, Monolith Resources, D.E. Shaw & Co., and CBRE, Inc. in the last year alone.

Schnell also points to the recent action by the Commodity Futures Trading Commission (CFTC) against Trafigura Trading for violating the CFTC’s analogous whistleblower protection rule through employment agreements with broad nondisclosure provisions.  He further points to the the Federal Trade Commission’s (FTC) Bureau of Competition issued last year cautioning against confidentiality agreements that get in the way of whistleblowers.

Schnell stresses that “[w]ith rapid advances in technology allowing for ever-more sophisticated methods of committing fraud and other wrongdoing, whistleblowers are becoming more important than ever.” He looks to artificial intelligence as a prime example, noting the critical role whistleblowers will play in protecting us from “a rash of potential misuse and corruption of this groundbreaking tool.”

Schnell concludes that with this ever-expanding agency recognition of the critical role of whistleblowers, companies should be extra cautious in how they treat whistleblowers going forward. “Otherwise, they may find themselves in the crosshairs of this newly charged campaign to go after companies that try to silence whistleblowers.”

Click to read the article in full.

Read 91pornWhistleblower Partner Gordon Schnell Published In American Banker On CFPB Move To Increase Whistleblower Protections at constantinecannon.com

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